Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe

Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of...
Kumar, Ronald; Stauvermann, Peter; Shahzad, Syed
2016-02-20 00:00:00
In this paper we examine the effect of technology on economic growth in Zimbabwe over the period 1975–2014 whilst accounting for structural breaks. We use the extended Cobb–Douglas type Solow (Q J Econ 70(1):65–94, 1956) framework and the ARDL bounds procedure to examine cointegration and short run and long run effects. Using unit root tests, we note that structural changes in Zimbabwe are generally marked by the period 1982 onwards. We find that mobile technology has a positive short-run (0.09 %) and long-run (0.08 %) impact on the output per capita. The structural changes post-1982 periods show positive impact in the short-run (0.06) and the long-run (0.09), whereas the coefficient of trend in the short-run (−0.03) and the long-run (−0.04) is negative. The Granger non-causality test shows a unidirectional causality from capital stock (investment) per capita to output per capita and a bi-directional causality between mobile cellular technology and output per capita. The plausible reasons for estimated magnitude effects and the direction of causality are explained for policy deliberation.
http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.pngQuality & QuantitySpringer Journalshttp://www.deepdyve.com/lp/springer-journals/can-technology-provide-a-glimmer-of-hope-for-economic-growth-in-the-HuiVmcvke0

Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe

Abstract

In this paper we examine the effect of technology on economic growth in Zimbabwe over the period 1975–2014 whilst accounting for structural breaks. We use the extended Cobb–Douglas type Solow (Q J Econ 70(1):65–94, 1956) framework and the ARDL bounds procedure to examine cointegration and short run and long run effects. Using unit root tests, we note that structural changes in Zimbabwe are generally marked by the period 1982 onwards. We find that mobile technology has a positive short-run (0.09 %) and long-run (0.08 %) impact on the output per capita. The structural changes post-1982 periods show positive impact in the short-run (0.06) and the long-run (0.09), whereas the coefficient of trend in the short-run (−0.03) and the long-run (−0.04) is negative. The Granger non-causality test shows a unidirectional causality from capital stock (investment) per capita to output per capita and a bi-directional causality between mobile cellular technology and output per capita. The plausible reasons for estimated magnitude effects and the direction of causality are explained for policy deliberation.

Journal

Quality & Quantity
– Springer Journals

Published: Feb 20, 2016

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References

A model of growth through creative destruction

Aghion, P; Howitt, P

The impact of ICT on East Asian economic growth: panel estimation approach